Build a global team in minutes
Get expert helpPapua New Guinea may not be the first country that comes to mind when you're eyeing global growth, but maybe it should be. With a growing workforce and rising interest from international employers, PNG is quietly gaining momentum in the Pacific region.
Still, figuring out how to hire and pay employees there can feel like diving into the deep end-a lot of unknowns and a lot of paperwork. That's where this guide comes in. We'll walk you through the practical steps to hiring in PNG legally, paying your team the right way, and avoiding the compliance headaches no one wants.
Step-by-step process to hire employees in Papua New Guinea
Let's get right into it: legally hiring someone in PNG means understanding how the system works, what needs to happen, when, and who's involved. It's a mix of local rules, key documents, and some smart choices about how you want to operate.
Understand the local hiring environment
Most employment activity is centered around Port Moresby, Lae, and Mount Hagen. You'll find strong talent in mining, agriculture, construction, and public services. English is widely used in business, but cultural norms and work styles vary by province.
Hiring is governed by PNG's Employment Act of 1978, which outlines your responsibilities as an employer, from contracts to time off to termination. You'll also want to check out the Industrial Relations Act and the most recent rulings from the Minimum Wages Board to stay aligned with current wage policies.
Registering as an employer
To hire directly, your company needs to register with the Internal Revenue Commission (IRC) to get a Taxpayer Identification Number (TIN). You'll also register with Nasfund for superannuation contributions and the Accident Compensation Commission.
If you're not ready to open a legal entity in PNG, working with an Employer of Record (EOR) is a faster way to hire. The EOR becomes the legal employer on paper, so you don't have to set up shop or take on direct compliance risk.
Get the right documentation
Every hire requires a clean, detailed paper trail. For local employees, this means:
• Signed employment contract with pay, responsibilities, and termination terms
• Tax and super registration through IRC and Nasfund
For non-citizens, you'll also need:
• A valid passport
• Medical and police clearances
• A work permit and employment visa
Processing work permits and visas is done through the Department of Labour and Industrial Relations and can take up to 12 weeks.
Need to onboard fast? That's where an EOR or local recruiter can help, managing the documentation and approvals while you focus on getting your new hire up to speed. Otherwise, processing work permits and visas is done through the Department of Labour and Industrial Relations and can take up to 12 weeks.
Use in-country hiring or lean on an EOR
If you already have a local legal entity and a team that knows the lay of the land, direct hiring might make sense. But if this is your first hire in PNG, an EOR can save time and reduce risk. You'll still manage the person's work, but the EOR handles contracts, payroll, taxes, and benefits-on the right side of PNG law.
An Employer of Record is a smart move if you're:
• Exploring PNG without opening a local branch
• Needing to hire quickly
• Building remote or hybrid teams across multiple countries
Payroll and wage compliance in Papua New Guinea
Once someone's hired, next comes payroll-and in PNG, that means knowing how much to pay, when, and what needs to be withheld.
Wages and pay structure
The national minimum wage is PGK 3.50 per hour as of 2025. In cities like Port Moresby, wages tend to be higher. Salaries are usually paid monthly and must be in Papua New Guinean Kina (PGK).
In general:
• PGK2,000-5,000/month (US$591 to $1182) is a common range.
• PGK6,000/month (US$1419) and up is considered competitive, especially in skilled industries.
Payroll deductions
You'll need to:
• Withhold income tax, known as Salary or Wages Tax-rates climb up to 42% for top earners.
• Contribute to Nasfund (8.4% from you, 6% from the employee).
• Budget for accident insurance, based on your industry risk.
Monthly reports to the IRC are mandatory. Payslips and annual tax statements should be part of your payroll workflow.
Legal documentation and employment requirements
Hiring isn't just about onboarding-it's about keeping everything in order throughout the employment lifecycle.
What every employee is entitled to
By law, employees in PNG get:
• Fourteen days of paid annual leave
• Six days of sick leave
• Eleven public holidays
• Twelve weeks of maternity leave, paid at half-salary
These rights apply even if you hire on a fixed-term basis. If your hire is from outside PNG, keep their permit current and stay aligned with the terms outlined in their visa.
Checklist
Here's what to gather:
• Signed employment agreement
• Tax and super registration proof
• Work permit and visa (for non-citizens)
• ID verification
• Emergency and medical details
Payment methods and payroll optimization
Most companies pay through direct deposit into local bank accounts like BSP, Westpac PNG, or Kina Bank.
Cross-border payments may trigger extra documentation, and you might need central bank approval for larger transfers. Want a smoother way? Use centralized payroll or an EOR partner to keep payments compliant, timely, and traceable.
Tips and resources for a successful application
Here's what helps:
• Start early with documentation, especially for non-citizens.
• Follow the checklists from PNG's Department of Labour.
• Don't guess-consult with legal or hiring experts to stay ahead of local labor rule changes.
Make hiring in Papua New Guinea simple (and compliant)
Hiring in PNG might look complex, but it doesn't have to be.
• Register or partner with an EOR
• Get documentation and contracts right
• Understand pay, benefits, and taxes
• Use trusted payment systems
This sets your team up for success, avoids compliance pitfalls, and keeps your focus where it belongs: growing your business.
Start with a hiring checklist tailored to PNG. It'll keep you organized and confident, whether you're onboarding your first employee or expanding a team across the region.
Pebl is your parter for Papua New Guinea
Hiring in a new country doesn't have tomean starting from scratch. With Pebl, you can legally hire and pay employees in Papua New Guinea without setting up a local entity or losing sleep over compliance. Need more distributed teams? We operate in 185+ countries worldwide.
Our employer of record service takes care of the hard stuff: tax filings, payroll, contracts, onboarding, and local regulations. Whether you're hiring a team on the ground or managing one remotely, we make sure your people get paid correctly and on time.
When you're ready to make hiring easy, let's chat.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided "as is," and no representations are made that the content is error-free.
© 2025 Pebl, LLC. All rights reserved.
